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Thursday, August 24, 2017

Infosys Turmoil Unfortunate: Remarks Karnataka Minister Deshpande

Karnataka Industries Minister R V Deshpande termed the
recent developments at IT major Infosys following sudden resignation of Vishal
Sikka as "unfortunate".

"Very unfortunate developments, this should not have
happened at Infosys," Deshpande said when asked about the recent events at
the city headquartered company.

"I can understand transparency is very important. If
there is no transparency there are ways to find out the truth, but
unfortunately, according to me, investors' confidence and shareholders'
confidence have been shaken," he told reporters.

"Infosys is the pride of the country, it is known to the
entire world. We are all proud of Infosys. I can only say such developments are
unfortunate," he added.

Last Friday, Sikka, the first non-founder CEO of Infosys,
resigned from the company following months of acrimony with high-profile
founders, led by N R Narayana Murthy, citing "malicious" and
"personal attacks" on him.

While Sikka did not name Murthy for his exit, the board of
the US$10 billion firm blamed the founder for "continuous assault"
through "factually inaccurate" and "already-disproved
rumours" for the resignation of the CEO.

Murthy, however, maintained that his only concerns were the
lapses in corporate governance standards, something that Infosys was admired
for at one point.

Sharp decline in Infosys share prices following the
developments has wiped out Rs 34,000 crore of investors' wealth in the last two
days.

When asked about reports that Nandan Nilekani is likely to
return to Infosys, Deshpande said he would not like to comment on it, and it is
left to the decision of the board, founders and shareholders of the company.

Nilekani, one of the co-founders of the company had joined
the Congress party ahead of 2014 Lok Sabha polls. He had also contested and
lost the election from Bengaluru South constituency.

Noting that the developments at the company were not healthy,
Deshpande said, "founders have struggled for the company, at the same time
shareholders have fully cooperated. Vishal Sikka also has good reputation.
These things should have been sorted out in-house".

"I think, still time is there. I am confident that they
are all people with rich experience, good people. The board, founders and
shareholders will come under one roof to resolve this issue," he said.